united states - uk p&i · federal law regulations • the act to prevent pollution from ships...

October 2014 Legal Briefing Supplement 1

EMISSION STANDARDS: SOx/NOx

Outside ECAs Within ECAs

SOx 3.5%m/m (since 1/01/2012) 1.0%m/m since 01/07/2010 (0.1% on and after 01/01/2015)

NOx Three Tier Scheme Tier III (Only for North America ECA and US Caribbean Sea ECA)

Federal law

Regulations

• The Act to Prevent Pollution fromShips (APPS): Annex VI of MARPOLis enacted in the US by APPS. The EPAhas the authority to enforce Annex VIwith the cooperation of USCG(through the ship inspections,examinations and investigations) Codeof Federal Regulations. Title 40 –Protection of Environment. Part 1043Control of NOx, SOx and PMEmissions form marine Engines andVessels subject to the MARPOLProtocol.

• The Clean Air Act

• The Final Rule published on April30, 2010: extends the ECA to theinternal waters.

Areas

• North America Emission ControlArea: on 26th March 2010 IMOdesignated as an ECA, waters off theNorth American coasts.

• US Caribbean Emission Control Area: on 15th July 2011 IMO designated asan ECA, waters off the coasts of PuertoRico and the US Virgin Islands byECA amendments MEPC.202(62)

For this area, the effective date of thefirst phase fuel sulphur standard (1%) is2014 and the second phase (0.1%)begins in 2015. Stringent NOx enginestandards begin in 2016 (Tier III).

Steamships operating in the NorthAmerican and USA Caribbean SeaECAs are exempted from compliancewith the Regulation 14 (SOx) through31/12/2014.

• Great Lakes: Vessels which operatewithin and outside the Great Lakesmust comply with the provisions of 40CFR 1043.

Great Lakes Vessels (vessels operatingexclusively in the Great Lakes, both USand foreign flagged) may be exemptedby EPA according to a separate waiverunder interim provisions described in40 CFR 1043.95 (c) if no acceptablefuel is available.

Steamships operating on the GreatLakes are subject to a separate waiverunder 40 CFR 1043.95 (a) when they

were propelled by steam engines andoperated within the Great Lakes before30th October 2009 and operateexclusively within the Great Lakes.

• The convenience of the designationof new ECA areas such as Pacific USterritories, smaller Hawaiian Islands andWestern Alaska is currently beingexamined.

California

The California Ocean-Going Vessel(OGV) Fuel regulation limited themaximum fuel sulphur for both marinegas oil (DMA) and marine diesel oil(DMB) to 0.1% m/m. Therefore, vesselsvisiting California ports have to complywith both the California OGV FuelRegulation and the North AmericanEmission area.

Besides, the California OGV FuelRegulation encompasses a non-compliance Fee Provision by which if avessel is unable to find a compliant fuel,a fee may be paid instead.

These requirements set in theCalifornia OGV Fuel Regulation won’tapply if the US adopts and enforcesrequirements that achieve equivalentemissions reductions. Furthermore, theCalifornia Air Resources Board willallow the use of alternative emissionscontrol technologies such as exhaust gascleaning devices as stated under theECA Regulation. !

United States

Summary of current MARPOL limits


Regulations for Vessel Air Emissionsapply to vessels over 400 gross tonnageoperating in Canada.

Regulations• Some requirements are in place under Vessel Pollution and Dangerous Chemicals Regulations (The Regulations)

• New implementations are now inplace under The Regulations Amendingthe Vessel Pollution and DangerousChemicals Regulations (TheAmendments) published 8/05/2013

Emissions Standards• Sulphur Oxides = Marpol

I) For Vessels inside the NA-ECA andthroughout Canadian waters south of60ºN, the current limit (since1/07/2010) is 1% but it will be 0.10%after 1/01/2015.

II) For Vessels outside the NA-ECA,north of 60ºN and including Hudson’sBay, James Bay and Ungava Bay, the current limit is 3.50% (since 1/01/2012) but it will be 0.50% after 1/01/2020

• Nitrogen Oxides = Marpol (Annex VI + NOx Technical Code 2008)

The NOx limits apply to enginesinstalled on vessels that have powerratings over 130 kilowatts as describedin table below.

If a vessel undergoes a major conversion or a new engine, substantially different from the old one, is installedthe current standard would apply.!

Canada

Tier I

Engines installed on vessels builtbetween December 31, 1999 toDecember 31, 2010

17.0 g/kWh when n is less than 130 rpm; 45 · n(-0.2) g/kWh when n is 130 or morebut less than 2,000 rpm; 9.8 g/kWh when n is 2,000

Tier II

Engines installed on vessels built afterDecember 31, 2010

14.4 g/kWh when n is less than 130 rpm; 44 · n(-0.23) g/kWh when n is 130 or morebut less than 2,000 rpm; 7.7 g/kWh when n is

Tier III

Engines installed on vessels built afterJanuary 1, 2016, that operate in ECAs

3.4 g/kWh when n is less than 130 rpm; 9 · n(-0.2) g/kWh when n is 130 or morebut less than 2,000 rpm; and 2.0 g/kWh when n is

Regulations• Country Party Annex VI Marpol• No Specific provisions regulatingemissions from ships.

Air Pollution• Air Pollution Control Ordinance10/04/2014• Air Pollution Control (Marine LightDiesel) Regulation 01/04/2014introduces a new sulphur content capof 0.05% for the locally suppliedmarine light diesel (MLD).

Hong Kong

Hong Kong Environmental Protection Department has required all ocean-going vessels (OGVs to use low sulphur fuel,

defined in the new legislation as fuelwith sulphur content not exceeding0.5% by weight, when at berth in HongKong waters. All OGVs must initiatefuel switch upon arrival at berth,complete the switch to low sulphur fuelwithin one hour, then use low sulphurfuel throughout the berthing period

until one hour after departure. Hong Kong government has declared

its long-term intention to set up anEmissions Control Area for ships in thePearl River Delta.

Meanwhile, since 2011 vessels havebeen participating in an industry-ledscheme (Far Winds Charter) by whichthey switch voluntarily to low sulphur fuel (0.5% sulphur content or less)when at-berth in Hong Kong untilDecember 2014. 17 major freight linershave signed up to this initiative: MaerskLine, Evergreen, OOCL, Yang Ming(Taiwan), APL, CMA CGM, COSCO,MOL, Hapag Lloyd, Hanjin, Hyundai,NYK, Hamburg Sud, Alianca, Hoegh,Crystal Cruises, Prestige CruiseHoldings. !

China




Regulations

• Australia: Country Party MARPOL Annex VI

Australia

Vessel/Voyage type/Area

All vessels

Sub-Category

Ozone-depleting substances

Nitrogen Oxides

Sulphur Oxides

Incinerators

Discharge Conditions

• Prohibited

• Operation of diesel engines >130kW prohibited unless engine iscertified to meet prescribed emission standards.

• New Engines:• Tier I – 17 g/kW from 1 January 2000• Tier II – 14.4 g/kW from 1 January 2011• Tier III – 3.4 g/kW from 1 January 2016 (in Emission Control Areas (ECA))Existing Engines (installed on ship on or between 1 January 1990 to 1 January 2000)• 17g/kW for diesel engine with power output >5000kW anddisplacement per cylinder => 90 litres• Approved method by Administration

• Sulphur content of fuel oil not to exceed 4.5%**

• From 1 January 2012, sulphur content of fuel oil not to exceed 3.5%**

• From 1 January 2020 sulphur content if fuel oil not to exceed 0.5%**

** Fuel oil to be purchased from a registered supplierNote: Feasibility review to be completed 2018

• Incinerators installed after 1 January 2000 must be type approved and certified to meet prescribed emission standards.

• Do not use within port limits

Summary of Discharge Standards for Ships and smaller vessels operating in Australian waters:MARPOL and local requirements (This table applies to all vessels)

Source: Amsa


Regulations• Country Party MARPOL Annex VI

Specific RequirementsSince the 1st January 2012, newregulations on sulphur content limits ofmarine fuels are in place:

• Sulphur content in marine fuels shallnot exceed 0.1% by mass in all vesselsarriving at Turkish ports and all inlandwaterway vessels sailing on Turkishinland waters.

• Sulphur content in marine fuels shallnot exceed 1.5% in all passenger vesselsproviding regular services in areascovered by Turkey’s marine jurisdiction.

These limitations apply to berthed or anchored Ships within the boundaries ofany port and staying at berth or at anchor for more than two hours. However,they won’t apply to vessels passing theTurkish Straits without calling to anyTurkish Port, if their transiting processdoes not exceed two hours. !

Turkey

French Transport Code, Article L 1431-3comprises a new CO2 reportingrequirement by which foreign shipowners need to provide information to their French customers, either cargointerests or passengers, of the mass of

CO2 when calling at French Ports. The mass of emitted CO2 is

calculated by multiplying the fuelconsumed during the voyage with therelevant emission factors published bythe French Authorities. The emissionfactors provide the quantity of CO2produced in kilograms for both the“operating phase” and the “upstreamphase” for each kilogram of fuel used(fuel oil, diesel, LNG and LPG). Thetotal quantity is expressed as a mass ineither grams (g), kilograms (kg) ortonnes (t) of CO2 corresponding to theactual service provided to cargointerests or passengers respectively.

In terms of goods, the provision of

this information to cargo interests maybe given either prior to or after thevoyage depending on the agreementbetween the parties, but in any eventmust be provided within two monthsof the voyage being completed.

For passengers, the information mustbe provided prior to the ticket beingpurchased, or if no ticket is issued, no later than completion of thepassenger’s voyage.

North America control Area comprises the French islands: Saint Pierre andMiquelon archipelago, therefore the more stringent limits applied to them. !

France

Outside ECAs Within ECAs

All Ships 3.5%m/m (since 18/06/2014) 1.0%m/m (Until 31/12/2014) (0.50% from 01/01/2020) (0.1% on and after 01/01/2015)

Passenger Ships 1.5% until 01/01/2020 1% (until 31/12/2014)(0.50% from 1/01/2020) (0.10% from 01/01/2015)

Ships at berth in EU ports 0.1% (since 01/01/2010)

Summary of EU Directive Current SOx limits


Finland is preparing stricter provisionson sulphur emissions from shipping to come into force by the beginning of 2015.

Finnish Transport Safety Agency(Trafi), the Finnish Border Guard andthe police will all monitor emissionsfrom shipping. The price differencebetween high- and low-sulphur fuels –gains are considered as ‘illegal financialgains’ therefore, the violators mustforfeit to the government.

Such penalties are considered more

tangible than fines or otherpunishments and would also apply toshipping companies.

The cost impact of such a measurewill only be known after the provisionscome into force and when the price oflow-sulphur fuel becomes clear.

Trafi has estimated that if ships use only low-sulphur fuel, the provisions will increase Finland’s maritime transportcosts by around €460 million/year, andby €120 million/year if scrubbers areinstalled in ships.!

Finland



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